Q 2Interim Report as of June 30, 2009
H1 - 2009 H1 - 2008 Q2 - 2009 Q2 - 2008
€ millions
Equity placements 21.8 174.8 16.3 96.0
Equity placed in portfolio funds 3.3 4.8 1.6 2.3
Equity placed, cumulative 1,917 1,798
Number of subscribers, cumulative 51,804 45,669
Assets held in trust, cumulative 1,525 1,391
Fund perFormAnce
H1 - 2009 H1 - 2008 Q2 - 2009 Q2 - 2008
T€
Sales 8,293 28,221 4,774 16,871
Recurring income 5,236 5,079 2,615 2,672
EBIT -7,406 3,385 -5,196 5,177
Consolidated result for the period -8,740 3,601 -5,599 4,039
EBIT margin (%) -89.3 12.0 -108.8 30.7
Return on sales (%) -105.4 12.8 -117.3 23.9
Total equity and liabilities 94,267 112,375
Equity capital 56,345 66,280
Equity ratio (%) 59.8 59.0
Result per share (€) -0.69 0.28 -0.44 0.32
Average headcount 131 152 125 156
Personnel costs 5,083 7,893 2,429 4,354
Personnel cost ratio (%) 61.3 28.0 50.9 25.8
Employees (as of June 30) 123 160
Key perFormAnce indicATors (iFrs)
Ladies and gentlemen,dear shareholders,
After the difficult conditions in the first quarter, things
calmed down somewhat for the Lloyd Fonds Group in the
second quarter. Spurred by extensive sales activities, place-
ment figures recovered slightly, coming to € 17.9 million in the
second quarter, including a sum of € 1.6 million collected for
the Premium Portfolio series. Accordingly, the total volume
for the first half of the year stands at € 25.1 million, including
€ 3.3 million for the Premium Portfolio series. This figure is
not satisfactory even though we managed to increase place-
ment figures almost three-fold over the first quarter despite
the persistently muted conditions.
This favorable trend was materially underpinned by the swift
placement of our Holland II office real estate fund. The sub-
scription period of only four-and-a-half months for the German
portion demonstrates investors‘ relatively strong interest in
solid and transparent tangible assets.
Despite the slight improvement in placement figures, our
earnings situation in the first six months of 2009 remains
unsatisfactory and came under additional pressure from
a number of exceptionals in the period under review. As a
result, Lloyd Fonds sustained a loss of € 7.4 million at the EBIT
level and a consolidated net loss of € 8.7 million in the first
half of 2009. Adjusted for exceptionals, consolidated net loss
would have come to € 6.2 million.
This year, we want to increase placement volumes in the real
estate segment compared with the previous year (€ 34 mil-
lion). In doing so, we are concentrating on secure and
established markets in Western Europe and Canada. With the
three hotel funds which we have initiated to date, we have left
a lasting impression on this important segment of the market,
allowing Lloyd Fonds to position itself uniquely.
Thus, a special celebration during which we handed over the
new Hotel am Fleesensee to its operator TUI was recently
held. A 20-year contract has been signed with TUI, the largest
European holiday travel company, providing the fund with the
necessary security. The Hotel am Fleesensee real estate fund
was launched with an equity volume of around € 8 million and
has already achieved a subscription rate of 50%. We are con-
vinced that the fund will benefit from the current trend which
is seeing a growing number of people spending their holidays
in their home country.
In contrast to the real estate markets, the shipping segment is
still feeling the strain of the economic crisis, with container
business in particular remaining in free fall. That said, we are
seeing preliminary positive signals in the bulker segment,
where both freight rates and ship prices have been recovering
over the past two months.
At the end of May, Lloyd Treuhand, a wholly-owned Lloyd
Fonds subsidiary, celebrated its tenth anniversary. To date,
more than 51,000 customers have subscribed to Lloyd Fonds
funds. To mark this anniversary, our fund subscribers re-
ceived a special loyalty offer. In this connection, a subscriber
committee was also established with the aim of intensifying
the dialog between the Management Board and other senior
staff, on the one hand, and particularly active subscribers to
our funds, on the other. We see this as a valuable source of
suggestions, ideas and wishes which we will be incorporating
in our activities. The committee is to have 20 to 30 members
and, starting in autumn 2009, will meet twice a year.
LETTER FROM THE MANAGEMENT BOARD
lloyd fonds interim report q 11 – 2009
Letter from the Management Board 1
In the first half of the year, we achieved a further improve-
ment in the coverage of costs by recurring income, widening
this rate to 64.9% of our fixed costs, up from 53.2% in 2008. As
well as this, we have an ample equity ratio of 59.8%. We con-
stantly seek to optimize all cost factors and are additionally
aided by the fact that even in the absence of any new business
we earn trusteeship and management fee income of € 10 mil-
lion per year.
In the first half of the year, we worked closely with our ship-
ping partners and the ordering single-ship entities to reduce
our risk exposure the ships on order. As a result, it was pos-
sible to postpone many delivery dates by up to 24 months in
some cases. We also assume that several of the ships which
had been on order will now no longer be delivered. At the
same time, we are in constant contact with our banks in con-
nection with funding matters.
Let us now cast a glance at the near future. The analysts at Feri
Euro Ratings Service project placement volumes of € 4.5 billion
in the market for closed-end funds in 2009. ProCompare, an
institute which tracks the economic performance of closed-
end funds, is more optimistic, projecting as it does a figure of
€ 7.5 billion for 2009 and € 8.5 billion in 2010. The substantial
variance in these forecasts reflects the difficulty of forecasting
future market trends reliably. Still, we remain confident of
being able to steer Lloyd Fonds safely through these difficult
times. In this connection, a number of exciting new projects on
which we are currently working will be playing a crucial role.
In conclusion, we would like to thank our staff for their
ded ication and commitment during these trying times. Our
thanks also go out to our subscribers and shareholders as
well as our business and sales partners who have show their
confidence in us.
Lloyd Fonds is well positioned to return to its former earnings
strength once the market starts picking up again.
Yours sincerely,
Dr. Torsten Teichert Michael F. Seidel
lloyd fonds interim report q 11 – 2009
2 Letter from the Management Board
LLOyD FONDs sTOck
Although fluctuation in the international equity markets gener-
ally subsided in the first half of the year, stock prices continued
to languish.
The German equity market has been moving upwards since the
beginning of 2009, rising from 4,856 points on the first trading
day of the year to over 5,300 at the end of July. At the end of
June it was trading at 4,808 points. Market observers interpret
this as evidence that the financial and economic crisis has now
bottomed out and that the markets are now already pricing in
an economic recovery.
This trend was also reflected in the SDAX, which is used as
the bench mark for Lloyd Fonds stock. After opening at 2,836
points on January 2, the SDAX gained 2.76% in the first half
of the year, closing at 2,904 points on June 30. At the end of
July, it had hit 3,000 points, showing that it, too, was moving
upwards.
Stock performance
Investors penalized listed investment fund initiators to an
above-average extent in response to negative sector and
company news in the first half of the year. The international
crisis afflicting the shipping industry played a key role in
this respect as it impaired sales of ship funds.
In this environment, Lloyd Fonds stock underpinned the
SDAX in the first six months of the year, trading at € 4.00
on January 2, 2009 and closing at € 2.33 on June 30, 2009.
On March 5, 2009, it hit its lowest price (€ 1.85) since the
Company went public in 2005. All told, the stock shed 41% of
its value in the year to the end of June accompanied by low
trading volumes. The second quarter was relatively stable,
with the stock declining by 2.9% from the beginning of April
to the end of June. After the end of the period under review,
the stock retreated again, standing at € 1.69 at the end of July.
The shareholder structure remained unchanged during the
period under review.
open communicationS
It is precisely in times of crisis that transparency is more
important than ever. At our annual general meeting held on
June 4, 2009 in Hamburg attended by some 150 shareholders,
the Management Board elaborated on the Company‘s perform-
ance in 2008. All items on the agenda requiring shareholder
approval were passed with a high vote, thus testifying to
shareholders‘ confidence in the Lloyd Fonds Group‘s manage-
ment and strategy.
We conducted numerous activities in the first half of the year
in response to the heightened need for information in the mar-
ket. For this purpose, we took part in the DVFA conference and
the Close Brothers Seydler investor conference. In addition, we
kept analysts and investors continuously briefed on the Lloyd
Fonds Group‘s performance in telephone conferences, press
releases and numerous one-on-ones. Looking forward to the
third quarter, the Company will be attending the SRC investor
conference in September and the Deutsches Eigenkapitalforum
investor conference in November.
core data on Lloyd Fonds stock
Ticker symbolWkN 617487, IsIN DE0006174873, Reuters L10
Market Official trading in Frankfurt/Main
Market segment Prime standard index
subscribed capital € 12,7 million
Designated sponsors
DZ BANk AG, close Brothers seydler AG
Number of shares (June 30, 2009) 12,725,367
Market capitalization (June 30, 2009) € 29,650,105
jan. 2, 2009 June 30, 2009
20
40
60
80
100
120
Lloyd Fonds AG SDAX
Performance of the Lloyd Fonds stock
%
lloyd fonds interim report q 11 – 2009
Lloyd Fonds stock 3
INTERIM MANAGEMENT REPORT OF THE LLOyD FONDs GROuP FOR THE FIRsT HALF-yEAR OF 2009
General economic environment characterized by uncertainty
In the first half of the year, a number of contradictory eco-
nomic indicators prompted most investors to adopt a cautious
and restrained stance. Whereas the IFO business confidence
index has risen slightly for the third consecutive time since
March, gross domestic product (GDP) has contracted by 3.8%
compared with the end of 2008.
However, sentiment brightened in the course of the second
quarter, with recent upbeat data from the industrial sector
encouraging researchers to assume that the German economy
contracted by only 0.5 percent or even less between April and
June. According to the German Federal Finance Ministry, the
outlook for Germany‘s economy has improved. There is much
evidence to suggest that the economy stabilized in the second
quarter.
Sentiment Still muted in the aSSet marketS
In the 4th quarter of 2008, there was already a year-on-year
decline in placement volumes from € 2.7 billion to € 2.1 bil-
lion. Feri Euro Rating Services AG calculates that placement
volumes in the 1st quarter of 2009 contracted by half again to
around € 1 billion. In this connection, it should be noted that
two exclusive real estate funds accounted for almost half of
the placement volumes.
Whereas placement volumes for real estate funds remained
more or less steady at the previous year‘s level in the 1st quar-
ter of 2009, ship fund placements evaporated almost complete-
ly, coming to only around € 100 million. At this stage, there are
still no clear signs of any recovery in placement figures. This
was confirmed by the Association of Closed-End Funds, which
reported on August 11, 2009 that there had been a further
decline in demand for closed-end funds to EUR 673 million on
the part of the Association members.
The downswing in the real economy, the persistent uncer-
tainty afflicting the international financial markets and the
pronounced restraint towards long-term investments have
been taking their toll on sales of closed-end funds for months.
Since the end of 2008, investors have been favoring short-
term liquid products yielding substantially lower returns.
Only certain offerings distributed via particular channels are
selling reasonably well at the moment.
buSineSS performance
In the first half of the year, Lloyd Fonds AG recorded aggre-
gate equity placements of € 25.1 million across all asset
classes – shipping, real estate, aircraft, traded endowment
policies and secondary market funds - including the Premium
Portfolio series. At around 61% or € 15.4 million, real estate
funds accounted for the bulk of this.
Launched in February, the Holland II office real estate fund
with an investment volume of € 40.9 million was subscribed
to in full by mid July, i.e. within only four-and-a-half months.
This real estate fund, which was primarily placed via strong
financial partners, shows that carefully and clearly structured
funds are currently sought-after investments. Given the
prevailing conditions, investors are particularly interested in
real estate funds made up of buildings in good locations with
investment-grade tenants and long-term leases. This approach
has also been adopted for our two hotel real estate funds,
which are currently in the subscription phase.
The Moderne Großstadthotels fund is investing in two new
hotel buildings operated in the renowned Motel One chain in
CBD locations in Berlin and Nuremberg. Firm leases covering
the forecast duration of the funds have been signed for the
two budget design hotels.
With the Hotel am Fleesensee fund, Lloyd Fonds is again plac-
ing store by the established German market with its moderate
buy-side prices. Located directly on the shore of the Fleesen-
see lake in Mecklenburg-West Pomerania, the 4-star wellness,
sports and resort hotel is the subject matter of a 20-year
contract with TUI AG . The fund has a total investment volume
of just under € 20 million, including equity of € 8 million. The
hotel was handed over to the operator TUI AG shortly after the
end of the period under review.
lloyd fonds interim report q 11 – 2009
4 consolidated Interim Management Report
In order to be better prepared for any cash flow problems on
the part of ship funds, Lloyd Fonds has developed a model for
improving the liquidity problems of ship funds in distress.
It seeks to preserve subscribers‘ liquidity while easing the
pressure on the loan side. Last year, Lloyd Fonds AG‘s fund
management preemptively decided to cut or omit dividend
payments in order to preserve the liquidity of the fund com-
panies concerned.
These measures were first taken by the MS Emilia Schulte ship
fund in July as the ship had sustained a liquidity shortfall as a
result of serious engine damage and an expiring charter. The
follow-up charter was not sufficient to cover the running costs.
The fund management approached the creditor bank in No-
vember 2008 and, after intensive negotiations, a restructuring
model was adopted to address the current liquidity shortfall
and to overcome the difficult market conditions. Following
the successful implementation of the restructuring package,
the ship is to be sold at a later date once market conditions
improve.
As Lloyd Fonds has been unable to shield itself from the ailing
market for traded endowment policies, it decided in July 2009 to
cancel the subscription phase for Britische Kapital Leben VIII.
reSultS of operationS
In the second quarter of 2009, the persistent global financial
and economic crisis continued to leave traces on the Lloyd
Fonds Group’s results of operations. In particular, the con-
tinued low placement volumes as well as exceptionals such as
impairment losses and the recognition of provisions left traces
on earnings for the quarter. On the cost side, the success of
the reorganization activities performed in the previous year
was particularly reflected in a substantial decline in personnel
costs.
The Group’s results of operations for the first half and the
second quarter of 2009 broke down as follows:
H1-2009 H1-2008 Q2-2009 Q2-2008
t€
sales 8,293 28,221 4,774 16,871
cost of sales and changes in inventories -4,317 -16,989 -3,054 -10,100
Personnel costs -5,083 -7,893 -2,429 -4,354
Depreciation, amortization and impairment losses -1,724 -384 -1,451 -197
Other operating result -5,266 -4,720 -3,105 -2,604
share of profit of associates 691 5,150 69 5,561
Result from operating activities -7,406 3,385 -5,196 5,177
Net financial result -510 1,231 73 –
Result before income tax -7,916 4,616 -5,123 5,177
Income taxes -824 -1,015 -476 -1,138
Consolidated result for the period -8,740 3,601 -5,599 4,039
The following changes arose in connection with sales:
H1-2009 H1-2008 Q2-2009 Q2-2008
t€
Placement of equity and placement guarantees 2,622 16,967 1,885 9,960
Project structuring 76 4,890 – 3,724
arrangement of financing 354 780 269 –
Trusteeship 3,698 3,332 1,835 1,720
Management fees 1,529 1,806 771 1,021
charter fees – 446 – 446
Others 14 – 14 –
Sales 8,293 28,221 4,774 16,871
lloyd fonds interim report q 11 – 2009
consolidated Interim Management Report 5
Compared with the second quarter of the previous year, sales
dropped by T€ 12,097 to T€ 4,774. This was particularly due to
the low placement volumes. Equity placement figures including
for the portfolio fund rose from € 7.2 million in the first quarter
to €17.9 million in the second quarter of 2009, resulting in an
increase in equity placement and placement guarantee income
from T€ 737 to T€ 1,885. However, this is well short of the eq-
uity placement figures including for the portfolio fund recorded
in the second quarter of 2008 (€ 98.3 million). Accordingly,
placement income in the second quarter of 2009 was down
T€ 8,075 on the previous year.
Income from equity placements and placement guarantees
broke down by fund as follows: T€ 600 from Holland II, T€ 407
from Hotel am Fleesensee, T€ 386 from Hotelfonds Motel One,
T€ 256 from Best of Shipping II, T€ 75 from MS Bermuda and
T€ 67 from Premium Portfolio I. The remaining placement
income is spread across a further five funds currently available
for subscription.
There was also a marked decline in income from the arrange-
ment of finance and project structuring from T€ 3,724 to
T€ 269 in the second quarter particularly as a result of the
Lloyd Fonds Group’s restraint in initiating new investment
products. Income in the second quarter was chiefly derived
from the arrangement of finance for the Hotel am Fleesensee
(T€ 136) and Motel One (T€ 101) funds.
Income from trusteeship business increased by T€ 115 over the
second quarter of the previous year to T€ 1,835, reflecting the
steady increase in limited partnership capital being managed
by Lloyd Treuhand.
Management fees earned in the second quarter of 2009
comprise fees received for services to the open-end ship fund
totaling T€ 320 (comparison period T€ 460) as well as fees of
T€ 451 (comparison period T€ 561) for the management of the
current funds.
In the previous year, charter fees had been earned from the
temporary operation of MV Tiger Pearl.
At 36.0% in the second quarter of 2009, the gross profit margin
was down on the previous year (40.1%) primarily as a result
of heightened commission expense in connection with selling
activities as well as the recognition of provisions.
Compared with the second quarter of the previous year, person-
nel costs were trimmed by 44.2% from T€ 4,354 to T€ 2,429
thanks to the reorganizing performed in the previous year,
which resulted in a drop in the average headcount from 156 in
the second quarter of 2008 to 125 in the period under review.
In addition, staff provisions of T€ 490 were reversed in the
second quarter of 2009. At the same time, new provisioning
was down T€ 1,079 on the same period one year earlier.
Depreciation, amortization and impairment losses rose from
T€ 197 to T€ 1,451 in the period under review particularly as a
result of impairment losses of T€ 1,231 recognized on available-
for-sale financial assets.
Other operating loss widened from T€ 2,604 to T€ 3,105 pri-
marily as a result of losses from the sale of secondary-market
shares.
The share of profit of associates recorded for the year-ago
period includes prorata income from the sale of two 12,800 TEU
container ships. The absence of comparable income in the
second quarter of 2009 explains the decline in this item by
T€ 5,492 to T€ 69.
As a result, the Lloyd Fonds Group sustained a loss at the EBIT
level of T€ 5,196 in the second quarter (comparison period EBIT
of T€ 5,177). Including the net financial result of T€ 73 and tax
expense of T€ 476, which is primarily due to the profit earned
by Lloyd Treuhand GmbH, Lloyd Fonds sustained a consolidated
net loss of T€ 5,599 in the second quarter of 2009.
The exceptionals of a total of T€ 2,581 which exerted pressure
on the Lloyd Fonds Group’s bottom line in the second quarter
are analyzed in the following table:
lloyd fonds interim report q 11 – 2009
6 consolidated Interim Management Report
H1 - 2009 Q2 - 2009
t€
Cost of sales -802 -802
Additional commission expense from sales and marketing activities -1,244 -1,244
Reversal of commission provisions recognized in the previous year 442 442
Personnel costs 638 360
Premature termination of the staff option program -130 -130
Reversal of provisions 768 490
Depreciation, amortization and impairment losses -1,282 -1,231
Impairment losses on shares in associates -1,282 -1,231
Other operating result -1,066 -893
Impairment losses on receivables -173 –
Provisions for voluntary compensation -500 -500
Losses from the disposal of shares in associates -445 -445
Reversal of provisions 52 52
Share of profit of associates 460 460
Remeasurement of the fair value of Fünfte LF Beteiligungsgesellschaft mbH & co. kG, Hamburg 460 460
Net financial result -526 -475
Interest expense from the renewal of placement guarantees -526 -475
-2,578 -2,581
net aSSetS
The Group’s net assets as of June 30, 2009 and December 31,
2008 are analyzed in the following table:
Assets June 30, 2009 Dec. 31, 2008
t€
Property, plant and equipment and intangible assets 2,946 3,365
Financial assets 37,644 47,603
Deferred income tax assets 2,310 2,371
Receivables and other assets 40,119 36,713
Derivative financial instruments 2,719 3,968
cash and cash equivalents 8,529 18,355
Total assets 94,267 112,375
Equity and liabilities H1 - 2009 Fy - 2008
t€
consolidated equity 56,345 66,280
Deferred income tax liabilities 51 294
Borrowings 15,058 22,685
Other liabilities 20,135 19,148
Derivative financial instruments 2,678 3,968
Total equity and liabilities 94,267 112,375
As of June 30, 2009, total assets stood at T€ 94,267 and were
thus down T€ 18,108 or 16.1% on the end of 2008.
On the assets side, there was in particular a decline in finan-
cial assets (down T€ 9,959), cash and cash equivalents (down
T€ 9,826), derivative financial instruments (down T€ 1,249)
and property, plant and equipment/intangible assets (down
T€ 419). This was offset by an increase of T€ 3,406 in receiva-
bles and other assets.
The drop in financial assets was primarily due to the disposal
of secondary-market shares of T€ 10,599 and impairment
losses of T€ 1,282. In addition, the carrying amounts of the
available-for-sale financial assets dropped by T€ 1,687 as a
result of changes from fair-value remeasurement recognized
within equity. The available-for-sale financial assets mostly
comprise shares held by Lloyd Fonds in its own funds. The
acquisition of further shares in Feedback AG, Hamburg
(T€ 1,040) and the investment in KALP GmbH, Böel (T€ 701)
as well as the acquisition of shares in a ship fund (T€ 1,801)
resulted in an increase in financial assets.
The decline in cash and cash equivalents reflects the sched-
uled repayment of two loans in a total amount of T€ 10,249.
Derivative financial instruments comprise reimbursement
claims under interest hedges which the Lloyd Fonds Group
transacted for various fund companies. This asset is matched
by liabilities in the same amount under derivative financial
instruments. The decline is due to the planned transfer of two
interest hedges to the respective fund companies.
lloyd fonds interim report q 11 – 2009
consolidated Interim Management Report 7
As there were no material investments in property, plant and
equipment and intangible assets in the period under review,
the scheduled depreciation/amortization of T€ 442 was a
further contributory factor in this decline.
The increase in receivables and other assets is due to
outstanding payments of T€ 5,913 on the part of the Best of
Shipping II fund in connection with the transfer of secondary-
market shares and a rise of T€ 2,639 in trusteeship receiva-
bles and of T€ 573 in receivables from related parties. The
opposite effect was exerted by the reduction in receivables
from funds from the collection of equity of T€ 2,430 and the
decline of T€ 3,557 in other receivables and assets.
On the other side of the balance sheet, equity contracted by
T€ 9,935 to T€ 56,345 in the period under review primarily as
a result of the consolidated loss sustained in the first half of
2009 (T€ 8,740). In addition, equity was reduced by T€ 1,420
due to changes recognized in equity from remeasurement of
financial assets including deferred taxes. On the other hand,
the additions to the share premium in connection with the
staff participation program (T€ 233) caused equity to rise. As
equity dropped more slowly than total assets, the equity ratio
widened marginally from 59.0% to 59.8%.
The decline of T€ 7,672 in borrowings is primarily due to the
aforementioned repayment of two loans. The opposite effect
arose from the increase in current bank borrowings.
Other liabilities climbed primarily as a result of provisions of
a total of T€ 1,073 for increased sales commission and the cost
of the premature termination of a fund investing in traded UK
endowment policies.
Net working capital, defined as current assets less cash and
cash equivalents and interest-free current liabilities, stands
at T€ 24,029 as of the end of the quarter (December 31, 2008:
T€ 33,594).
financial condition
The Group’s financial condition in the first half of 2009 com-
pared with the same period of 2008 is set out below:
H1 - 2009 H1 - 2008
t€
consolidated result for the period before share of profit of associates, interest and income taxes -8,020 -1,442
Non-cash income and expenses 2,731 -719
cash changes in working capital 2,122 -23,769
Dividends and profit distributions received 544 281
Net interest and income taxes -1,903 -3,736
Cash flow from operating activities -4,526 -29,385
cash flow from investing activities 2,287 -17,169
cash flow from financing activities -7,607 7,684
Non-cash changes in cash and cash equivalents 2 3,378
Net decrease in cash and cash equivalents -9,844 -35,492
cash and cash equivalents at the beginning of the period 17,645 48,013
Foreign currency translation differences 19 -1
Cash and cash equivalents at the end of the period 7,820 12,520
The net cash outflow of T€ 4,526 from operating activities in
the first half of the year was primarily due to the consolidated
loss before the share of profit of associates, interest and taxes
(T€ 8,020). On the other hand, the cash decline of T€ 2,122 in
working capital, which was attributable to the drop of T€ 2,403
in receivables from issuing business among other things, had
a favorable effect on cash flow from operating activities. Non-
cash income and expenses in an amount of T€ 2,731 include
lloyd fonds interim report q 11 – 2009
8 consolidated Interim Management Report
depreciation, amortization and impairment expense on non-
current assets and financial assets (T€ 1,724) as well as losses
from the sale of non-current assets (T€ 387), impairments of
receivables (T€ 272) and staff expense under the staff option
program (T€ 233).
Net cash inflow from investing activities (T€ 2,287) includes
payments made for the acquisition of shares in associates
of T€ 2,139. On the other hand, payments of T€ 4,470 were
received from the sale of financial assets.
The net cash outflow from financing activities is due to the
aforementioned repayment of loans (see section on net assets).
The non-cash change in cash and cash equivalents stems
from the effects of currency translation of bank balances with
restricted drawing rights used as short-term collateral for
financing advance payments.
Allowing for the aforementioned changes and the currency
translation differences, free cash and cash equivalents con-
tracted from T€ 17,645 to T€ 7,820 in the first half of 2009.
employeeS
As of June 30, 2009, the Lloyd Fonds Group had 123 perman-
ent employees (not including the members of the Management
Board, employees on extended child-care leave, trainees and
temporary staff), down from 156 on December 31, 2008. In
July, there was a further cut of 7 in the headcount. Staff layoffs
for operational reasons were started in the fourth quarter of
2008 as part of the reorganisation plans.
Generally speaking, it is planned to lower the sum total of fixed
salaries, bonuses and social security for 2009 by € 1.5 million
on the previous year. This will be lower than the figure of
€ 12.6 million recorded in 2007.
riSkS
Lloyd Fonds AG’s business performance may be impaired
by uncertainties impacting the results of its operations, its
financial condition and its net assets. Compared with the end
of the previous year, there has been no material change in
the Company’s risk profile. Risks continue to arise from the
limited forward visibility in the real economy and the capital
markets together with the extreme drop in demand for closed-
end funds.
Using its risk management system, the Lloyd Fonds Group is
regularly monitoring the value of its financial assets against
the backdrop of these sustained difficult conditions. Detailed
information on its risk exposure and the financial effects can
be found on page 65 et seq. of the annual report for 2008.
In the first half of 2009, Lloyd Fonds managed to significantly
reduce its contingent liabilities from € 397.9 million as of
December 31, 2008 to € 299.8 million as of June 30, 2009.
This already includes the compensation claims under joint
and several liability towards Lloyd Fonds AG. Full placement
of Holland II contributed to this reduction. In addition, there
was a decline in contingent liabilities arising from the ship
pipeline comprising independent single-ship entities (SPVs) in
which Lloyd Fonds and shipping company holds shares. These
single-ship entities have successfully postponed the delivery
dates for nine ships, while four bulkers will presumably
no longer reach delivery. As of June 30, 2009, our pipeline
comprised a total of 29 ships, an increase of 3 compared with
December 31, 2008. This was due to the discontinuation of
Flottenfonds XII.
We are engaged in intensive consultations with the creditor
banks in connection with risk-mitigation efforts.
lloyd fonds interim report q 11 – 2009
consolidated Interim Management Report 9
eventS occurrinG after June 30, 2009
Michael F. Seidel was appointed to the Supervisory Board
of Feedback AG on July 31, 2009 and subsequently elected
chairman. In this connection, Feedback AG enlarged its
Supervisory Board to six members, amending its articles of
incorporation accordingly. With a share of around 30% of its
capital, Lloyd Fonds has been the largest shareholder of this
Hamburg-based financial services company since the begin-
ning of 2008. Feedback AG is listed in the Entry Standard of
the Frankfurt Stock Exchange.
There were no reportable events occurring after the balance
sheet date liable to materially influence Lloyd Fonds AG’s
results of operations, financial condition and net assets.
outlook for the Global economy
According to the latest forecast issued by the International
Monetary Fund (IMF), the global economy is slowly emerging
from the severe recession. The IMF writes that the global econ-
omy is currently stable thanks to extensive macroeconomic
and financial stimulus. It projects global economic contraction
of 1.4% this year.
but sees a return to growth of 2.5% next year. At 1.9%, the
IMF’s forecast had been somewhat more cautious in April. It
has also revised its forecast for growth in China upwards, now
projecting expansion of 7.5% in this country this year and as
much as 8.5% in 2010.
Sector performance
We assume that the persistent crisis will continue to take its toll
on demand for close-end funds over the next few months.
In a recent study of the market, Feri EuroRating Services
projects equity placement volumes of around € 4.5 million for
2009 on the basis of a flat second quarter and an upward trend
in the 2nd half of the year. At the beginning of the year it had
forecast placement volumes of € 10 billion for this year. This
drastic decline shows once more how difficult it is to forecast
the market for closed-end funds at the moment. This figure
will be primarily underpinned by real estate funds, which are
expected to attract equity placements of up to € 2 billion, as well
as aircraft and new energy funds.
Real estate funds are benefiting from many investors’ height-
ened interest in security. The outlook for shipping is viewed less
optimistically, with placement volumes expected to drop below
€ 1 billion.
Turning to 2010, the Feri study forecasts placement volumes
across all asset classes of up to € 6 billion, stating that a recov-
ery to up to € 8 billion is possible in 2011 once economic growth
resumes. ProCompare is somewhat more optimistic, estimating
placement volumes of € 10 billion in 2011 and € 11 billion in
2012. Not least of all, this trend will be underpinned by the
return to growth in global trade and, along with it, the recovery
in the ship markets.
outlook for the company
Despite the current favorable indicators coming from the global
economy as well as improved placement figures, the Lloyd
Fonds Group sees only a slow return of investment confidence.
The difficult market conditions are likely to persist, particularly
in Germany, with the shipping markets in particular remaining
in the grips of the economic crisis for some time to come. We
are more optimistic about real estate and assume that this asset
class will attract greater equity placements in 2009 than it did
in 2008 (€ 34 million).
lloyd fonds interim report q 11 – 2009
10 consolidated Interim Management Report
In the face of the complexity and inconsistency of the economic
indicators, the forecasts of the past few months have frequently
proved to be incorrect. For this reason, we have again dis-
pensed with specific guidance for the Company over the next
few months. However, positive trends could materialize in the
second half of the year.
Lloyd Fonds AG constantly scans the markets for interesting
new assets in the real estate and transportation segments. In
the shipping segment, we are working on innovative new fund
models which will be launched in the near future. For example,
an option to return fund shares (offering guarantee) seeks to
address investors’ heightened need for security.
As early as in the autumn, we will be launching in Best of
Shipping II Plus, a new product which grants subscribers
the right to return their shares if the three relevant shipping
indices – Baltic Dry Index, Baltic Tanker Index and ConTex –
unexpectedly do not recover over the next two years. These
indices are selected on the basis of the target markets for Best
of Shipping II and thus track trends in the bulker, tanker and
container shipping markets. This new fund variation aims to
encourage subscribers to return to long-term investments.
Moreover, we will be continuing the successful Holland real
estate fund series in response to heightened subscriber interest
in real estate.
Lloyd Fonds remains equipped to weather a faltering market
recovery. The Group not only improved fix cost coverage
from 53.2% in 2008 to 65.3% in the first half of 2009 but also
continues to have a comfortable equity ratio of 59.8%. We are
constantly seeking to optimize all cost factors At the same time,
Lloyd Fonds also benefits from the recurring trusteeship and
management fee income of around € 19 million.
opportunitieS
Against the backdrop of the current economic and financial
situation as well as the expected outlook for the sector, the
Lloyd Fonds Group faces not only risks but also a number of
opportunities.
Closed-end funds offer direct access to tangible assets. Once
the global economy starts to recover, sales of closed-end funds
should pick up substantially. Moreover, Lloyd Fonds AG as-
sumes that shipping markets will stabilize in the medium term
and that there will be no sustained contraction in global trading,
something which will additionally heighten the appeal of ship
fund investments.
Opportunities will also arise from the foreseeable regulation
of the investment fund industry. As a leading listed fund initi-
ator, Lloyd Fonds is well positioned to satisfy the mounting
regulatory requirements and to benefit from expected market
consolidation.
Further and more detailed information on the outlook for
economic conditions as a whole and with respect to the oppor-
tunities for the Company can be found in Lloyd Fonds AG’s most
recent annual report. This and also other information on Lloyd
Fonds stock is available at www.lloydfonds.de.
lloyd fonds interim report q 11 – 2009
consolidated Interim Management Report 11
conSolidated Statement of comprehenSive incomefor the period from January 1 to June 30, 2009 and for the
period from April 1 to June 30, 2009
consolidated income statement Note H1-2009 H1-2008 Q2-2009 Q2-2008
t€
Sales 5.1 8,293 28,221 4,774 16,871
changes in inventories -183 314 -183 214
cost of sales 5.2 -4,134 -17,303 -2,871 -10,314
Personnel costs 5.3 -5,083 -7,893 -2,429 -4,354
Depreciation, amortization and impairment losses 5.4 -1,724 -384 -1,451 -197
Other operating result 5.5 -5,266 -4,720 -3,105 -2,604
share of profit of associates 5.6 691 5,150 69 5,561
Result from operating activities -7,406 3,385 -5,196 5,177
Finance income 5.7 2,144 2,289 1,578 439
Finance costs 5.7 -2,654 -1,058 -1,505 -439
Result before tax -7,916 4,616 -5,123 5,177
Income taxes 5.8 -824 -1,015 -476 -1,138
Consolidated result for the period -8,740 3,601 -5,599 4,039
Earnings per share (€)
– basic 5.9 -0.69 0.28 -0.44 0.32
– diluted 5.9 -0.69 0.28 -0.44 0.32
consolidated statement of recognized income and expense H1-2009 H1-2008 Q2-2009 Q2-2008
t€
Consolidated result for the period -8,740 3,601 -5,599 4,039
components of result recognized directly within equity
Available-for-sale financial assets -1,687 165 -320 264
Deferred income taxes attributable to these 267 -26 50 -26
Investments in associates -5 – -356 –
currency translation differences -3 -1 -24 -1
Result after taxes recognized directly within equity -1,428 138 -650 237
Total result recognized within equity -10,168 3,739 -6,249 4,276
The notes on pages 16–23 are an integral part of this interim
financial report.
INTERIM FINANcIAL sTATEMENTs (IFRs) As OF JuNE 30, 2009
lloyd fonds interim report q 11 – 2009
12 consolidated Interim Financial statements (IFRs)
conSolidated balance Sheetas of June 30, 2009 in comparison to December 31, 2008
Note June 30, 2009 Dec. 31, 2008
t€
Assets
Non-current assets
Property, plant and equipment 1,401 1,599
Intangible assets 1,545 1,766
Investments in associates 6.1 29,421 26,053
Available-for-sale financial assets 6.2 4,838 6,177
Deferred income tax assets 2,310 2,371
39,515 37,966
current assets
Trade and other receivables 6.3 32,185 29,545
Receivables from related parties 5,419 4,846
Inventories 562 745
Available-for-sale financial assets 6.2 3,385 15,373
Derivative financial instruments 2,719 3,968
current income tax assets 1,953 1,577
cash and cash equivalents 6.4 8,529 18,355
54,752 74,409
Total assets 94,267 112,375
Equity
share capital 6.5 12,725 12,725
Additional paid-in-capital 6.5 45,432 45,199
Retained earnings and other reserves 6.5 -1,812 8,356
Total equity 56,345 66,280
Liabilities
Non-current liabilities
Trade payables 619 656
Borrowings 6.6 – 73
Deferred income tax liabilities 51 294
670 1,023
current liabilities
Trade payables and other liabilities 9,466 8,874
Amounts due to related parties 8,083 8,638
Borrowings 6.6 15,058 22,612
Other provisions 1,096 23
Derivative financial instruments 2,678 3,968
current income tax liabilities 871 957
37,252 45,072
Total liabilities 37,922 46,095
Total equity and liabilities 94,267 112,375
The notes on pages 16–23 are an integral part of this interim
financial report.
lloyd fonds interim report q 11 – 2009
consolidated Interim Financial statements (IFRs) 13
conSolidated caSh flow Statement for the period from January 1 to June 30, 2009
Note H1-2009 H1-2008
t€
Cash flow from operating activities
consolidated result for the period before share of profit of associates, interest and income taxes 7.1 -8,020 -1,442
Depreciation, amortization and impairment losses from non-current assets 1,724 384
Loss from the disposal of non-current assets 387 1
Other non-cash income and expenses 7.2 437 -790
changes in inventories 183 -314
changes in trade and other receivables and derivative financial instruments 2,020 -30,702
changes in receivables from related parties -525 4,603
changes in trade payables and other liabilites -693 2,708
changes in amounts due to related parties 248 -144
changes in other provisions 1,072 -234
Interest received 230 1,379
Interest paid -930 -579
Dividends and profit distributions received 544 281
Income taxes paid -1,704 -4,712
Income tax refunds received 501 176
Net cash used in operating activities -4,526 -29,385
Cash flow from investing activities
Purchases of:
Intangible assets and property, plant and equipment -44 -531
Available-for-sale financial assets and investments in associates -2,139 -25,962
Proceeds from the disposal of:
Intangible assets and property, plant and equipment – 17
Available-for-sale financial assets and investments in associates 4,470 9,307
Net cash generated from / used in investing acitivities 2,287 -17,169
Cashflow from financing acitvities
Dividend paid to the equity holders of the Parent company – -16,543
Proceeds from borrowings 2,690 24,227
Repayment of borrowings -10,297 -
Net cash used in / generated from financiang activities -7,607 7,684
Non-cash change in cash and cash equivalents 2 3,378
Net decrease in cash and cash equivalents -9,844 -35,492
cash and cash equivalents at January 1 17,645 48,013
Foreign-currency translation differences 19 -1
Cash and cash equivalents at June 30 7.3 7,820 12,520
The notes on pages 16–23 are an integral part of this interim
financial report.
lloyd fonds interim report q 11 – 2009
14 consolidated Interim Financial statements (IFRs)
conSolidated Statement of chanGeS in equityfor the period from January 1 to June 30, 2009
Other equity components
subscribedcapital
Additional paid-in capital
Retained earnings
Available-for-sale
financial assets
Investments in associ-
ates
currency translation differences Total equity
t€
Amount at January 1, 2008 12,725 45,144 27,956 352 - - 86,177
Total result recorded within consolidated equity - - 3,601 139 - -1 3,739
Dividends paid for 2007 -16,543 -16,543
Equity component of convertible bond - -37 - - - - -37
Amount at June 30, 2008 12,725 45,107 15,014 491 – -1 73,336
Amount at January 1, 2009 12,725 45,199 6,825 1,338 202 -9 66,280
Total result recorded within consolidated equity - - -8,740 -1,420 -5 -3 -10,168
Equity component of convertible bond - 233 - - - - 233
Amount at June 30, 2009 12,725 45,432 -1,915 -82 197 -12 56,345
The notes on pages 16–23 are an integral part of this interim
financial report.
lloyd fonds interim report q 11 – 2009
consolidated Interim Financial statements (IFRs) 15
NOTEs TO THE INTERIM FINANcIAL sTATEMENTs As OF JuNE 30, 2009
1 Summary of SiGnificant accountinG policieS
These interim financial statements as of June 30, 2009 have
been prepared in accordance with the International Financial
Reporting Standards (IFRS) adopted and published by the
International Accounting Standards Board (IASB), as endorsed
by the European Union as of June 30, 2009. As a matter of
principle, Lloyd Fonds early adopts all standards and interpre-
tations.
The following new or modified standards and interpretations
were endorsed by the EU Commission in the second quarter
of 2009.
IFRS 3 “Business Combinations” and IAS 27
“Consolidated and Separate Financial Statements”
IFRIC 16 “Hedges of a net investment in a foreign
operation”
The early adoption of these standards and interpretations
is currently not exerting any influence on the Lloyd Fonds
Group’s net assets, financial condition or results of operations.
In the second quarter of 2009, the IASB published the follow-
ing new interpretations and revisions to existing IFRS stand-
ards, which must be applied for the first time in accounting
periods beginning on or after January 1, 2009 but which are
not early-adopted as they have not yet been endorsed by the
EU Commission:
Amendments to IFRS 2 “Share-based Payments”, IFRIC 2
“Scope of IFRS 2”, IFRIC 11 “Group and Treasury Share
Transactions”: They were published by the IASB on June 18,
2009 and must be applied for the first time in accounting
periods commencing on or after January 1, 2010.
“Improvements to IFRS”: Published by the IASB on April
16, 2009, they comprise 15 non-urgent but necessary
amendments to 12 existing standards in connection with
the Annual Improvements Process.
There were no changes in any of the other accounting policies
described in the notes to the consolidated financial statements
as of December 31, 2008. Accordingly, these interim financial
statements must be read in the light of the disclosures made
in the consolidated financial statements for 2008 and the
interim financial statements for the first quarter of 2009.
In accordance with the IFRS rules (IAS 34 “Interim Financial
Reporting”), these interim financial statements have been
prepared in condensed form compared with the consolidated
financial statements as of December 31, 2008.
2 companieS conSolidated
Open Waters Pacific Fighter Pte. Ltd., Singapore, was decon-
solidated in the second quarter of 2009. This did not exert any
material influence on the Group’s net assets, financial position
or results of operations. The companies consolidated now
comprise the Parent Company as well as 20 subsidiaries.
3 capital manaGement
In difficult economic times, the Lloyd Fonds Group attaches par-
ticular importance to capital management. This initially entails
sustained efforts to ensure adequate equity resources and, on
the basis of successful business operations, the generation of a
reasonable return on capital employed. In this connection, top
priority is given to the Group’s credit rating. A strong equity
basis is of crucial importance for obtaining project and bridge
finance from creditor banks for our products.
In the first half of 2009, extensive measures were taken to
reduce operating costs, including the optimization of processes,
the elimination of duplicate activities, staff layoffs and a fun-
damental review of all cost items. In addition, the dividend for
2008 was omitted.
As of June 30, 2009, equity capital stood at T€ 56,345, down
from T€ 66,280 at the end of 2008. The equity ratio widened
slightly from 59.0% to 59.8% due to the lower volume of total
assets.
16 consolidated Interim Financial statements (IFRs)
lloyd fonds interim report q 11 – 2009
4 SeGment information
Segment profit/loss for the first half and the second quarter of
2009 breaks down as follows:
H1-2009Trans-
portation Real EstateOther
AssetsFund
management TrusteeshipAll other
segments Total
t€
External sales 652 2,058 204 1,539 3,698 21 8,172
Other operating income 70 4 85 9 197 135 500
cost of materials -1,170 -2,172 -873 -510 -454 -693 -5,872
Personnel expenses -1,211 -924 -25 -570 -638 -1,715 -5,083
Other operating expenses -688 -199 -20 -147 -439 -2,577 -4,070
share of profit of associates 805 – 301 525 23 -1,080 574
Depreciation and amortisation -831 – – -19 -79 -795 -1,724
EBIT -2,373 -1,233 -328 827 2,308 -6,704 -7,503
Net financial result -164 1 -468 -258 -12 488 -413
Result before income tax -2,537 -1,232 -796 569 2,296 -6,216 -7,916
Q2-2009Trans-
portation Real EstateOther
AssetsFund
management TrusteeshipAll other
segments Total
t€
External sales 430 1,612 88 774 1,842 21 4,767
Internal sales – – – – – -7 -7
Other operating income -32 2 85 6 135 40 236
cost of materials -872 -1,721 -708 -254 -255 -323 -4,133
Personnel expenses -588 -483 11 -290 -306 -773 -2,429
Other operating expenses -453 -165 -1 -74 -196 -1,339 -2,228
share of profit of associates 723 – – 106 – -877 -48
Depreciation and amortisation -441 – – -9 -21 -980 -1,451
EBIT -1,233 -755 -525 259 1,199 -4,238 -5,293
Net financial result -180 – -417 454 -40 353 170
Result before income tax -1,413 -755 -942 713 1,159 -3,885 -5,123
Segment reporting has been based on the guidance contained
in IFRS 8 “Operating Segments” since the beginning of 2009.
In contrast to IAS 14 “Segment Reporting”, which had previ-
ously been applied, IFRS 8 stipulates the use of the “manage-
ment approach”, i.e. the reportable segments are identified
and presented on the basis of the entity’s internal reporting
system. As part of efforts to reorganize the Lloyd Fonds Group,
internal reporting was completely revamped at the end of last
consolidated Interim Financial statements (IFRs) 17
year and adjusted to match the new organizational structure.
As a result, no comparative data for the previous year is avail-
able.
Lloyd Fonds’ internal reporting system does not include any
provision for breaking down assets and liabilities by segment
as management does not consider this data to be relevant for
managing the Group. Accordingly, these disclosures have been
dispensed with.
lloyd fonds interim report q 11 – 2009
5 noteS on the conSolidated income Statement
5.1 SaleS
Sales break down as follows:
H1-2009 H1-2008 Q2-2009 Q2-2008
t€
Placement of equity and placement guarantees 2,622 16,967 1,885 9,960
Project structuring 76 4,890 – 3,724
Arrangement of financing 354 780 269 –
Trusteeship 3,698 3,332 1,835 1,720
Management fees 1,529 1,806 771 1,021
charter fees – 446 – 446
Others 14 – 14 –
8,293 28,221 4,774 16,871
The decline in sales is chiefly due to the lower placement vol-
umes as well as the absence of income from project structuring
and the arrangement of finance. Reference should be made to
the section on revenues in the management report for further
information on the breakdown of and changes in sales.
5.2 coSt of SaleS
The cost of sales breaks down as follows:
H1-2009 H1-2008 Q2-2009 Q2-2008
t€
commission 3,043 16,053 2,335 9,570
cost of other services bought 1,091 1,139 536 633
ship operating costs - 111 - 111
4,134 17,303 2,871 10,314
Commission was paid in connection with the placement of
equity. The cost of other services bought primarily relates to
management services utilized and fund-related marketing and
retailing costs, e.g. prospectus printing costs.
5.3 perSonnel coStS
Personnel costs break down as follows:
H1-2009 H1-2008 Q2-2009 Q2-2008
t€
Wages and salaries 4,296 7,295 1,955 4,104
Employee participation program 233 -37 181 -107
social security 547 631 288 355
Post-retirement benefit costs 7 4 5 2
5,083 7,893 2,429 4,354
The reduction of 44.2% in personnel costs in the second quarter
from T€ 4,354 to T€ 2,429 is due to the decline in the average
head count from 156 to 125 as well as the drop in personnel
provisions by T€ 1,569.
5.4 depreciation, amortization and impairment loSSeS
Depreciation, amortization and impairment losses break down
as follows:
H1-2009 H1-2008 Q2-2009 Q2-2008
t€
Depreciation and amortization
Property, plant and equipment 196 189 96 98
Intangible assets 246 195 124 99
442 384 220 197
Impairment losses
Available-for-sale financial assets 1,282 - 1,231 -
Depreciation, amortization and impairment losses 1,724 384 1,451 197
lloyd fonds interim report q 11 – 2009
18 consolidated Interim Financial statements (IFRs)
The impairment losses recognized on available-for-sale finan-
cial assets primarily relate to the impairment of T€ 854 on the
remaining holdings of secondary-market shares and of T€ 380
on a share in a private equity fund.
5.5 other operatinG reSult
Other operating result breaks down as follows:
H1-2009 H1-2008 Q2-2009 Q2-2008
t€
Other operating income
Damages 56 42 50 1
Remuneration in kind 95 77 46 43
Income from recharged expenses 23 247 15 192
Rentals 10 – 6 –
Derecognition of liabilities – 12 – –
Income from the sale of equity investments 64 65 – 65
Other income 126 173 91 99
374 616 208 400
Other operating expenses
Financial statement, legal and consulting costs -1,023 -917 -623 -519
Loss from the sale of equity investments -451 – -445 –
Retailing support and subscriber relations -676 -1,290 -382 -746
Rentals, ancillary rental costs and cost of premises -691 -694 -348 -353
Office supplies, IT costs and communications -544 -553 -293 -296
Motor vehicle and travel costs -389 -596 -199 -338
Other personnel costs -274 -280 -161 -140
Non-deductible input tax -240 -347 -129 -220
Impairments on receivables and unrecoverable receivables -399 -1 -44 -1
Insurance and contributions -84 -197 -36 -86
Other expenses -869 -461 -653 -305
-5,640 -5,336 -3,313 -3,004
Other operating result -5,266 -4,720 -3,105 -2,604
5.6 Share of profit of aSSociateS
The share of profit of associates breaks down as follows:
H1-2009 H1-2008 Q2-2009 Q2-2008
t€
Fünfte LF Immobiliengesell-schaft mbH & co. kG, Hamburg 272 -298 319 -68
Feedback AG, Hamburg -90 223 48 195
Interim profits from the sale of sea ships – 5,350 – 5,350
TVO Income Portfolio L.P., El Paso, usA -59 -407 -478 72
Others 568 282 180 12
691 5,150 69 5,561
The remeasurement of the repayment obligation to the limited
partners as a result of an amended dividend distribution
forecast resulted in a net profit of T€ 319 for the quarter at
the level of Fünfte LF Immobiliengesellschaft mbH & Co. KG,
Hamburg.
The net loss from TVO Income Portfolio L.P., USA, of T€ 478 in
the second quarter (previous year net profit of T€ 72) is prima-
rily due to the effects of the currency translation of US dollars.
This investment is financed by means of a loan denominated in
US dollars. Currency translation gains (previous year currency
translation losses) in connection with this loan are reported
within net financial result (see Note 5.7).
5.7 net financial reSult
Net financial result, which comprises interest income net of
interest expense as well as gains net of losses from foreign
currency translation, breaks down as follows:
H1-2009 H1-2008 Q2-2009 Q2-2008
t€
Net interest result -587 908 -554 79
Net currency translation gains/losses 77 323 627 -79
-510 1,231 73 –
lloyd fonds interim report q 11 – 2009
consolidated Interim Financial statements (IFRs) 19
The net financial expense recorded in the second quarter was
primarily due to interest expense of T€ 475 arising in connec-
tion with the renewal of placement guarantees.
Net currency translation gains were dominated by the report-
ing-date measurement of the US-$ loan to finance TVO Income
Portfolio L.P., United States (see Note 5.6).
5.8 income taxeS
Income taxes comprises income taxes paid or owed as well as
deferred income taxes. Taxes comprise corporate tax plus the
solidarity surcharge and trade tax.
Income taxes break down as follows:
H1-2009 H1-2008 Q2-2009 Q2-2008
t€
current taxes -740 -768 -455 -1,063
Deferred taxes -84 -247 -21 -75
-824 -1,015 -476 -1,138
5.9 earninGS per Share
Basic
Basic earnings per share are calculated by dividing profit or
loss attributable to the ordinary equity holders by the average
number of ordinary shares outstanding during the period
under review:
H1-2009 H1-2008 Q2-2009 Q2-2008
Result attributable to equtiy holders in Parent company (T€) -8,740 3,601 -5,599 4,039
Average number of shares issued (in thousands) 12,725 12,725 12,725 12,725
Basic earnings per share -0.69 0.28 -0.44 0.32
Diluted
Diluted earnings per share are calculated by adding all conver-
sion rights to the average number of ordinary shares outstand-
ing. It is assumed that the convertible bond will be converted
into shares and that the net profit will be adjusted to allow for
interest expense and the tax effect. With respect to the conver-
sion rights, the number of shares which it was possible to
acquire at their fair value is calculated. The number of shares
thus calculated is compared with the number which would
have arisen had the conversion rights been exercised.
With the termination of the staff option program, employees
no longer held any conversion rights as of the balance sheet
date.
Q1-2009 Q1-2008 Q1-2009 Q1-2008
Result attributable to equity holders in Parent company (T€) -8,740 3,601 -5,599 4,039
Interest expense on convertible bond (T€) 3 8 2 4
Result for determining di-luted earnings per share (T€) -8,737 3,609 -5,597 4,043
Weighted average number of shares issued (in thousands) 12,725 12,725 12,725 12,725
Adjustments for assumed conversion of convertible bonds (in thousands) – 17 – 14
Wheigted average number of shares for diluted earnings per share (in thousands) 12,725 12,742 12,725 12,739
Diluted earnings per share -0.69 0.28 -0.44 0.32
lloyd fonds interim report q 11 – 2009
20 consolidated Interim Financial statements (IFRs)
6 noteS on the conSolidated balance Sheet
This section describes selected changes in the items of the
balance sheet.
6.1 inveStmentS in aSSociateS
The increase of T€ 3,368 in investments in associates com-
pared with December 31, 2008 is chiefly due to the purchase
of further shares in Feedback AG, Hamburg, (T€ 1,040) and
the acquisition of a stake in KALP GmbH, Böel (T€ 701) as
well as the acquisition of shares in a ship fund (T€ 1,801) by
TradeOn AG.
6.2 available-for-Sale financial aSSetS
The available-for-sale financial assets dropped by T€ 13,327
compared with December 31, 2008 primarily due to the
transfer of secondary markets shares valued at T€ 10,599
and impairment losses of T€ 1,282. In addition, the carrying
amounts dropped by T€ 1,687 as a result of fair-value remeas-
urement.
6.3 trade and other receivableS
Trade and other receivables break down as follows:
Juni 30, 2009 Dec. 31, 2008
t€
Receivables from issuing business 17,435 19,865
Receivables from transfer of secondary market shares 5,913 –
Receivables from trusteeship 4,527 1,888
Receivables from the sale of investments in ship companies 3,424 3,349
Other receivables and other assets 886 4,443
32,185 29,545
The receivables from the transfer of secondary market shares
relate to the “Best of Shipping II” fund.
The drop in other receivables and assets is attributable, among
other things, to a decline of T€ 956 in input tax refund claims.
In addition, the purchase price for the acquisition of the shares
in a ship fund referred to in Note 6.1 was netted with a current
loan receivable from the seller.
6.4 caSh and caSh equivalentS
The changes in cash and cash equivalents are analyzed in the
consolidated cash flow statement. Reference should be made to
Note 7.3 for the breakdown.
6.5 equity
The composition of and changes in the Group’s equity are
analyzed in the consolidated statement of changes in equity.
As part of the 2005 employee participation program, Lloyd
Fonds AG issued several installments of partial debentures
entitling their holders to convert them into Lloyd Fonds AG
stock. In a letter dated April 15, 2009, Lloyd Fonds submitted
to its employees an offer to buy back the issued partial bonds
at their nominal value and to assume all rights and obligations
arising from them. At its meeting of April 15, 2009, the Super-
visory Board additionally passed a resolution to terminate the
employee participation program in full in the course of 2009
provided that all employees concerned accept Lloyd Fonds’
offer. As of the balance sheet date, all employees had sold back
their partial bonds to Lloyd Fonds.
6.6 borrowinGS
The reduction in borrowings by T€ 7,627 to T€ 15,058 is chief-
ly due to the scheduled repayment of loans (T€ 10,249). The
opposite effect arose from the utilization of current overdraft
facilities (T€ 2,690).
lloyd fonds interim report q 11 – 2009
consolidated Interim Financial statements (IFRs) 21
7.3 compoSition of caSh and caSh equivalentS
For the purposes of the cash flow statement, cash and cash
equivalents break down as follows:
H1-2009 H1-2008
t€
cash at banks 8,525 12,515
cash at banks with limited drawing rights -709 -
cash in hand 4 5
7,820 12,520
The bank balances with limited drawing rights relate to term
deposits which have been pledged as collateral for finance for
advance payments for future fund companies.
8 other diScloSureS
8.1 continGencieS
Contingencies comprise placement guarantees for equity to
be placed, guarantees for advance and equity bridge finance,
bank guarantees, guarantees for interest and currency hedges
and increased liable amount. Fixed-liability guarantees are
recognized only in an amount reflecting the outstanding
value of the principal debt. Including the settlement claims
under joint and severable obligations towards third parties
of T€ 227,089 (December 31, 2008: T€ 217,631), contingencies
come to a total of T€ 299,797 as of June 30, 2009 (December 31,
2008: T€ 397,854).
7 noteS on the conSolidated caSh flow Statement
7.1 reconciliation with reSult for the period
For the purposes of the cash flow statement, result for the
period before the share of profit of associates, interest and
income taxes is calculated as follows:
Note H1-2009 H1-2008
t€
Result from operating activities -7,406 3,385
share of profit in associates 5.6 -691 -5,150
Net currency translation gains/losses 5.7 77 323
-8,020 -1,442
7.2 other non-caSh tranSactionS
Other non-cash income and expenses break down as follows:
Note H1-2009 H1-2008
t€
unrealized currency translation gains/losses -68 -682
Derecognized liabilities 5.5 – -12
Additions to and reversals of provisions – -59
Impairments on receivable 272 –
Personnel expenses attributable to convertible bond 5.3 233 -37
437 -790
lloyd fonds interim report q 11 – 2009
22 consolidated Interim Financial statements (IFRs)
8.2 operatinG leaSe commitmentS
The Group leases office space, motor vehicles and copiers
under operating leases. Commitments break down as follows:
Juni 30, 2009 Dec. 31, 2008
t€
Office space 6,452 6,968
Vehicles and copiers 313 391
6,765 7,359
The obligations particularly relate to the rental of office space.
As part of trust business, shares of T€ 1,524,670 (December 31,
2008: T€ 1,543,446) are managed on the Company’s own
behalf but for the account of various trustors. In addition,
trust accounts of T€ 28,901 (December 31, 2008: T€ 7,472) are
maintained on the Company’s own behalf but for the account
of various trustors.
8.3 related-party tranSactionS
In the second quarter of 2009, there were no material transac-
tions with related parties.
8.4 eventS after the balance Sheet date
After the end of the period under review, Michael F. Seidel
was appointed to the Supervisory Board of Feedback AG on
July 31, 2009 and subsequently elected chairman. There were
no reportable events occurring after the period under review
liable to materially influence Lloyd Fonds AG’s results of
operations, financial condition and net assets.
9 reSponSibility Statement
“To the best of our knowledge, and in accordance with the
applicable reporting principles for interim financial reporting,
the interim consolidated financial statements give a true and
fair view of the assets, liabilities, financial position and profit
or loss of the Group, and the interim management report of the
Group includes a fair review of the development and perform-
ance of the business and the position of the Group, together
with a description of the principal opportunities and risks
associated with the expected development of the Group for the
remaining months of the financial year.”
Hamburg, August 12, 2009
The Management Board
Dr. Torsten Teichert Michael F. Seidel
lloyd fonds interim report q 11 – 2009
consolidated Interim Financial statements (IFRs) 23
cERTIFIcATE OF REVIEW
to lloyd fondS aG, hamburG
We have reviewed the abridged interim consolidated financial
statements, comprising the abridged balance sheet, the
abridged statement of comprehensive income, the abridged
cash flow statement, the abridged statement of changes in
equity and selected notes to the abridged interim consoli-
dated financial statements of Lloyd Fonds AG, Hamburg, for
the period from January 1 to June 30, 2009. The preparation
of the abridged interim consolidated financial statements in
accordance with the IFRS stipulations for interim financial
reporting to be applied in the EU is the responsibility of the
Company’s Management Board. Our duty is to issue a certifi-
cate on the abridged interim consolidated financial statements
on the basis of our review.
We performed our review of the abridged interim consolidated
financial statements pursuant to the German principles for
the review of financial statements as promulgated by Institut
der Wirtschaftsprüfer (IDW). These principles require that we
plan and perform the review such that after critical appraisal
it is possible to exclude with reasonable certainty that the
abridged interim consolidated financial statements do not
materially conform to the IFRS stipulations on interim finan-
cial reporting as they are to be applied in the EU. This type
of review is primarily confined to questioning the Company’s
employees and conducting analytic assessments and therefore
does not achieve the level of certainty afforded by an audit of
the financial statements. As we were not instructed to conduct
an audit, we are unable to issue an auditor’s report.
On the basis of our review, we confirm that we are aware of
no circumstances or factors leading us to assume that the
abridged interim consolidated financial statements were not
compiled in material conformity to the IFRS stipulations on
interim financial reporting as they are to be applied in the EU.
This certificate is issued on the basis of the agreement
entered into with the Company subject to the General Engage-
ment Terms for Wirtschaftsprüfer and Wirtschaftsprüfungs-
gesellschaften dated January 1, 2002 including with respect to
third parties.
Hamburg, August 12, 2009
PricewaterhouseCoopers AG
Wirtschaftsprüfungsgesellschaft
Claus Brandt ppa. Michael Kapitza
Wirtschaftsprüfer Wirtschaftsprüfer(German Public Auditor) (German Public Auditor)
lloyd fonds interim report q 11 – 2009
24 certificate of review
ediTor
Lloyd Fonds AG
Amelungstrasse 8–10
20354 Hamburg
conTAcT
Carolin von Below
Investor Relations
Tel.: +49 (0)40 325678-0
Fax: +49 (0)40 325678-99
E-Mail: [email protected]
consuLTinG And desiGn
Kirchhoff Consult AG, Hamburg
www.kirchhoff.de
This english language version of the interim report is a convenience
translation. In the event of any debt, the German version is to apply.
FinAnciAL cALendAr
2009
2009 Financial Services Forum, Frankfurt/Main September 7
Investor conference at 2009 Deutsches Eigenkapitalforum, Frankfurt/Main November 9
Interim Report Q3 November 12
All dates are provisional only and subject to change without notice.
Lloyd Fonds AG · Amelungstraße 8–10 · 20354 Hamburg · Tel. +49 (0)40 325678 - 0 · Fax +49 (0)40 325678 - 99 · www.lloydfonds.de